How to Make Money From Mobile Apps

Mobile apps are everywhere today. Can you imagine a day without using a mobile app? Games, shopping, fitness maps.. we are practically swimming in apps. People spend hours on their phones. So, making money from mobile apps is an extremely viable business idea for those considering this very field. Therefore, in this blog, How to Make Money From Mobile Apps, let’s talk about some of the strategies that have been used and recommended by Inter Smart – mobile app specialists.

Proven Ways to Make Money From Mobile Apps in 2025

1. In-App Advertising

One of the most easiest ways. Here’s how it works: advertisers pay app owners to show ads to users while they use the app. You can earn money based on the number of impressions (views) or clicks these ads receive as well.

Different Types of In-App Ads:

Banner Ads: These are small ads at the top/bottom of the screen. They’re a common option for apps with a simple layout, as they don’t interfere much with user experience.

Interstitial Ads: Full-screen ads are shown at natural breakpoints, like between game levels or transitions.

Rewarded Ads: These types of ads offer users a reward (like extra lives or game currency) in exchange for watching a video ad.

2. Freemium Model: Free with Paid Upgrades

The downloading of the app is completely free in this model, but some features might come with a price. In this model, the product can be downloaded and allows people to try the thing but makes them pay for certain experiences or extra features afterward. The best-case example is Spotify, the free version exists, and to remove ads and bring more features, the user needs to subscribe to Spotify Premium. This business model works well for apps that contain content, games, or services for which the user wants some changes or upgrades

3. In-App Purchases: Direct Sales Within the App

In-app purchase allows users to buy directly within the application, and this can include extra levels, virtual goods, and even real-world products. This model really works with gaming, e-commerce, and lifestyle apps, where it is possible for users to buy additional content or items that enhance their experience. In mobile games like Clash of Clans or Candy Crush, you are free to play but have various in-app purchases available, such as resources, boosters, and special characters.

4. Subscription Model: Regular Payments for Ongoing Access

The subscription model is known for giving special privileges behind a paywall. The best examples would be Netflix, Prime, Hulu, etc. They take monthly subscriptions to watch their films, serials, and other programs that they produce exclusively. It is also applicable for applications that come under the fitness, news, and educational category.

5. Sponsorships and Partnerships

If you have a specific target audience or if your audience keeps growing, you may work with brands that want to target this audience. Advertisers will have to pay a fee to place an ad for their product or the complete feel of an application as a whole to the targeted group of audience.

7. Affiliate Marketing: Promote Products and Earn Commission

Affiliate marketing can, therefore, be defined as a method of making income within an application that involves making a sale to customers of someone else’s product or service. It could very well be suited for use in lifestyle, fitness, or shopping apps where product recommendations make great sense. Many use an affiliate program by Amazon.

iOS vs. Android In-App Purchases: What to Know

When it comes to making money from in-app purchases, both iOS and Android platforms have strengths and quirks. 

User Spends: iOS users have the perception of being relatively spendier in-app when compared to Android users. Indeed, this has been well established in other research, where average spending for a particular app is reported higher, making iOS the most profitable option for that kind of app.

Market Size: Android has a far larger global market share, especially in Asia and South America. So, although the iOS user will spend more, Android offers you access to a far larger pool of potential users.  For broader reach, many developers prefer Android; for a higher average spend, iOS may be the way to go.

Revenue Split and Store Policies: Both Apple’s App Store and Google Play take a cut from in-app purchases, usually around 30%. However, Apple has strict policies around in-app purchases and requires more approvals, while Google’s policies are slightly more flexible.

Monetization Methods for Free Apps vs. Paid Apps

There’s a big difference between making money from free apps versus paid apps. Each has its own advantages, and the right choice depends on your app’s target audience and purpose.

Free Apps: Free apps rely on alternative revenue methods like ads, in-app purchases, or subscriptions. With a free app, you have a better chance of attracting a large user base because people are more likely to download apps that don’t require upfront payment. However, to keep this audience engaged, you need to provide real value while subtly integrating monetization.

Paid Apps: The direct revenue from downloads makes the revenue more predictable if your app is popular. But it is harder to get users because most people wouldn’t like to pay for something they haven’t tried yet. Paid apps need to offer something unique, therefore very valuable to justify the cost upfront.

Free App Monetization Strategy

In-app Advertising: Very rarely, with the nonintrusive display of ads, this maintains a user-friendly experience.

Freemium Model: Allow free basic functionality, and then charge them to get an upgrade or something more exclusive.

Subscriptions: Following content-rich apps, the subscription model should be used, through which users will receive a premium with more features and without advertisements.

Referral Marketing: Monetize with Referrals

Referral marketing is a clever way to make money by advertising third-party products or services within your app. With referral programs, you usually include a unique referral link within the app and each time a user interacts with it in a specific way, you get paid. 

Types of Referral Models

Cost Per Action (CPA): This model measures a user’s engagement after clicking the referral link

Cost Per Click (CPC): With CPC, you get paid every time a user clicks the referral link, regardless of any additional action.

Cost Per View (CPV): CPV is the system where you will be earning for showing the referral ad to the users inside your application. For so long as it is being shown, you earn the pay.

Cost Per Install (CPI): This pays you whenever referrals pertain to the advertising of other applications provided that they tap or install the application to which they are referred.

Still confused? Connect with our mobile app experts at Inter Smart today!!